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TECH FOUNDERS ASKED: DOES YOUR FIRM PASS THE GRANDMA TEST?
Tech entrepreneurs looking for investment in their early stage businesses need to pass the “grandma test” if they want to be successful.
That’s the view of Norman Molyneux, founder and CEO of Acceleris Capital, who says too many tech entrepreneurs speak in a language that makes it difficult for other people to understand what they do.
“The grandma test is ‘can you explain it to your grandma?” explained the veteran funder. “We use that a lot. Could you talk to someone in a bar or at a party and explain what you do and why?
“If you can’t, you’ll struggle to get that early investment. As you move on and start talking to technical investors, that’s fine, because they’ll understand what you do – but that early investment tends to be coming from high net worth or early-stage funds.
“Tech start-ups need to respect their audience, and that not everyone is an expert in understanding what they do. Just break it down into simple business speak. ‘I need some money to get an office’, or ‘I need some money to get a laboratory, and kit it out’. That’s really what the investor is looking at.”